7 Celebrity Printings sold annual subscriptions to their magazine for $33,000 in December, 2019. The magazine is published monthly. The new subscribers received their first magazine in January, 2020. 10 points

1. What adjusting entry should be made in January if the subscriptions were originally recorded as a liability?

2. What amount will be reported on the January 2020 balance sheet for Unearned Subscription Revenue?

10. 5 points Instructions

Indicate with the appropriate letter whether each of the transactions above results in:

(a) an increase in assets and a decrease in assets.

(b) an increase in assets and an increase in owners equity.

(c) an increase in assets and an increase in liabilities.

(d) a decrease in assets and a decrease in owners equity.

(e) a decrease in assets and a decrease in liabilities.

(f) an increase in liabilities and a decrease in owners equity.

(g) an increase in owners equity and a decrease in liabilities.